Apple falls on Beats news; Tesla recovers from selloff

SAN FRANCISCO (MarketWatch) — Apple Inc. retreated Friday on media reports that it is in talks to buy headphone maker Beats Electronics in a multi-billion dollar deal while Tesla Motors Inc. recovered from the previous day’s selloff that shaved 11% off of its stock price.

Apple
AAPL, -1.54%
shares shed 0.6%. The iPhone maker is reportedly negotiating a buyout of Beats for $3.2 billion, a deal, if it goes through, that would be out of character for the company. “This would be Apple’s largest acquisition ever and, as an established brand, a major deviation from its strategy to buy technology,” analyst Timothy Arcuri at Cowen & Co. said in a report.

Shares of Tesla Motors Inc.
TSLA, -0.94%
bounced back to rise 0.9%. The stock had tanked 11% on Thursday as a drop in revenue and concerns about sizable expenditure in the coming months overshadowed after the electric car company’s better-than-expected first-quarter earnings.

Gainers

Computer Sciences Corp.
CSC, -1.76%
shares climbed 7.7%. Computer Sciences on Thursday said its fiscal fourth-quarter profit fell to $174 million, or $1.17 a share, from $281 million, or $1.81 a share, a year earlier. But on an adjusted basis, it earned $1.09, beating consensus estimate of $1.04.

Apple is reportedly making a bid to buy out luxury headphone maker Beats.

News Corp
NWSA, -1.29%
shares rose 4.7%. News Corp late Thursday reported its fiscal third-quarter profit fell to 8 cents a share from 56 cents a share a year ago. On an adjusted basis, the media company earned 11 cents a share, ahead of the 2 cents a share projected by analysts. Revenue fell 5% to $2.08 billion. News Corp also announced the appointment of William Lewis as chief executive officer of Dow Jones. Dow Jones is the parent company of The Wall Street Journal and MarketWatch.

Keurig Green Mountain Inc.
GMCR, -1.96%
shares added 3.9%. The single-serving coffee maker on Wednesday reported second-quarter adjusted profits of $1.08 a share on sales of $1.10 billion. Forecasts had called for 95 cents a share in earnings on revenue of $1.05 billion.

Decliners

Shares of Mylan Inc.
MYL, -1.08%
fell 2.6%. The stock has been pressured after Swedish pharmaceutical company Meda AB rejected an updated merger proposal from Mylan last month. Mylan is off 10% so far in May.

Nvidia Corp.
NVDA, -2.54%
shares dropped 2.6%. The computer components company on Tuesday announced better-than-expected first-quarter results but its second-quarter revenue outlook was flat. Nvidia had to release its earnings report early after a preliminary draft was distributed in error.

Wisconsin Energy Corp.
WEC, -0.46%
shares shed 2.8%. The stock was downgraded to sell from neutral and its price target lowered to $44 from $46 at UBS.

Rocket Fuel Inc.
FUEL, -0.43%
sank 24% after the digital advertising firm gave a downbeat outlook in its earnings report late Thursday. The company said it expects sales of between $88 million and $92 million in the second quarter, missing consensus estimates of $101.8 million.

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